Fund will help relocate workers

China will spend 100 billion yuan ($15.3 billion) over the next two years to relocate workers in steel, mining and other sectors suffering from overcapacity, officials from the nation's industry watchdog said on Thursday.

The government is also trying to close a large number of nonprofitable State-owned enterprises, known as "zombie" companies, to curb production of steel, flat glass, cement and more materials amid weak demand, said Feng Fei, vice-minister of industry and information technology.

"The 100 billion yuan fund, set up by the central government, is designed to help laid-off workers get new jobs by offering training and other services," he said at a news conference, adding that local authorities will play a key role in solving the lay-off issue.